#MarketTurbulence Market Turmoil: Understanding Volatility and Preparing for It
Market turmoil is a state of severe and unpredictable fluctuations in financial markets, characterized by sharp price movements up and down in various assets such as stocks, bonds, and commodities. These disturbances can arise from a wide range of factors, including:
Macroeconomic events: such as high inflation, rising interest rates, economic recession, or financial crises.
Geopolitical events: international conflicts, political instability in key regions, or trade tensions.
Unexpected shocks (black swan events): such as global pandemics or large-scale natural disasters that impact supply chains and global demand.
Technological developments: disruptive innovations or risks related to cybersecurity.
Collective speculation: collective actions of investors based on rumors or asset "bubbles."